Full Year 2024 Perenti Ltd Earnings Call Transcript
Key Points
- Record financial performance with revenue at $3.3 billion, EBITR of $645 million, EBITA of $314 million, and NPAT A of $166 million.
- Strong free cash flow result of $184 million, exceeding initial forecasts.
- Successful integration of DDH1 Limited, positioning the drilling services division as one of the leading drilling companies globally.
- Reduction in net debt to 0.7 times, achieving a record low leverage for the organization.
- Commitment to sustainability with initiatives like battery electric vehicle trials and a full mine electrification study.
- Increased interest expense due to higher interest rates and temporary increase in debt balances from the DDH1 acquisition.
- Lower rig utilization levels in drilling services, impacting performance.
- Closure of the Savannah Nickel Mine, resulting in a net EBITDA impact of $11.2 million.
- Tragic passing of an employee, highlighting the need for improved safety measures.
- Challenging market conditions for drilling services, especially in the second half of FY24.
Good morning and thank you for joining the Perenti financial year 2024 results call. My name is Mark Norwell and I am the Managing Director and CEO of Perenti. Presenting alongside me today is Peter Bryant, our CFO.
Before talking to our numbers, I'd first like to provide an overview of the business as it stands today on slide 3. Perenti is the parent company for our four operating divisions. Within these divisions, we retain 13 brands, each with industry recognition and value.
For instance, within contract mining, Barminco and AMS are renowned leaders in underground hard rock mining, with more than 30 years of experience, and AMS is a leading surface miner in Africa. Within drilling services, the former DDH1 brands of DDH1 drilling, Ranger, Strike and Swick, have been combined with Ausdrill to create a globally leading drilling company, with capability across the full spectrum of mining exploration, development, and production.
Mining services contains a portfolio of businesses
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